ECB Drops Easing Bias, EUR Climbs

As expected by many, the European Central Bank (ECB) have held rates steady, but tweaked some of the language at its monetary policy decision.

The EUR (€1.2423) has rallied after the ECB dropped its easing bias – referring to the option to increase asset purchases under its quantitative easing (QE) program if the eurozone economy deteriorates.

Still, the ECB reiterated that bond purchases “are intended to run until the end of September 2018, or beyond, if necessary.”

Germany’s 10-year Bund yield briefly backed up to +0.70% after the ECB announcement. It had traded at +0.67% before the decision.

ECB President Mario Draghi is due to hold a press conference at 08:30 am EST.

Source Bloomberg

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Dean Popplewell

Dean Popplewell

Vice-President of Market Analysis at MarketPulse
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
Dean Popplewell